There’s a lot to be optimistic about in the Financial sector as 3 analysts just weighed in on The RMR Group Inc (RMR), LendingClub Corp (LC) and Monmouth Real Estate Investment (MNR) with bullish sentiments.
The RMR Group Inc (RMR)
The RMR Group Inc received a Buy rating and an $80 price target from B.Riley FBR analyst Bryan Maher yesterday. The company’s shares closed yesterday at $50.85, close to its 52-week low of $48.46.
Maher observed:
“We are reducing our F2019-F2020 estimates for RMR and initiating F2021 estimates following a F2Q19 miss driven by headwinds emanating primarily from two RMR client companies: specifically, weakness in OPI shares resulting from the merger of GOV with SIR at YE18, combined with a dividend cut and asset sales; and weakness in SNH shares, due to a restructuring of its leases/management agreements with FVE and a dividend cut and asset sales, have cut into RMR’s management fees from those businesses. This is being partially offset by $904.7M in acquisitions by ILPT in 1Q19. RMR reported $0.50, below our $0.53 estimate and the consensus estimate of $0.57. Adjusted EBITDA came in at $24.7M, below our $27.0M estimate, but above the consensus estimate of $23.8M.”
According to TipRanks.com, Maher is a 1-star analyst with an average return of -0.6% and a 48.6% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Senior Housing Properties Trust, and Office Properties Income Trust.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for The RMR Group Inc with a $87 average price target.
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LendingClub Corp (LC)
Maxim Group analyst Michael Diana maintained a Buy rating on LendingClub Corp yesterday and set a price target of $4.50. The company’s shares closed yesterday at $3.38.
Diana commented:
“LC reported strong 1Q19 results, above consensus and guidance on revenue and adjusted EBITDA, and within guidance on GAAP EPS. We are maintaining our price target of $4.50 based on our new 2020 Adjusted EBITDA estimate. Our price target represents an 88% premium (59% previously) to OnDeck Capital (ONDK – Hold) based on 2020E EV/EBITDA multiples. We believe that a significant premium is warranted because: 1) LC takes no direct credit risk (whereas 2) LC is growing adjusted EBITDA much faster than OnDeck (estimated 2020E vs. 2018A adjusted EBITDA growth of 72% for LC vs. 19% for OnDeck).”
According to TipRanks.com, Diana is a 5-star analyst with an average return of 6.0% and a 56.7% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Manhattan Bridge Capital Inc, and Arlington Asset Investment.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for LendingClub Corp with a $4.65 average price target, which is a 37.6% upside from current levels. In a report issued on May 8, Oppenheimer also assigned a Buy rating to the stock with a $5 price target.
Monmouth Real Estate Investment (MNR)
In a report released today, Craig Kucera from B.Riley FBR reiterated a Buy rating on Monmouth Real Estate Investment, with a price target of $16.50. The company’s shares closed yesterday at $14.25.
Kucera observed:
“We are reducing our target on Investment Corp. (MNR) from $17 to $16.50, as 2Q19 results were $.02/share light of expectations due to falling dividend income from the company’s REIT securities portfolio. In addition to a reduced level of dividend income going forward, both due to dividend reductions & suspensions as well as MNR’s disclosure that they anticipate bringing down the relative size of the securities portfolio to 5% of undepreciated assets (vs. a current 8.5%) by FY2020, acquisitions in 2019 are expected to be more back loaded than we had earlier assumed. As a result, we are lowering our 2019 Core FFO from $0.94 to $0.88 our 2020 from $1.05 to $0.92.”
According to TipRanks.com, Kucera is a 4-star analyst with an average return of 6.2% and a 66.3% success rate. Kucera covers the Financial sector, focusing on stocks such as NexPoint Residential Trust Inc, Urstadt Biddle Properties Inc, and Consolidated-Tomoka Land Co.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Monmouth Real Estate Investment with a $15.17 average price target, representing a 6.5% upside. In a report issued on May 10, Boenning & Scattergood also maintained a Buy rating on the stock with a $17.50 price target.
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